The Four Keys to maximising valuation - People

September 2, 2022 Neale Lewis

People: The CEO Is Redundant

When the owner is critical to a company’s success, it is much riskier for someone to purchase the business. It’s best for future business owners, and you, if the business can both survive and thrive without you.

You as the entrepreneur can be the biggest risk. If you're not redundant in the business, if the business needs you every single day, no matter what, that's really risky for a buyer. 
We teach entrepreneurs how to build a system and a process that creates results that aren't totally dependent on them, how to build a great senior team, how to build an execution protocol and how to build the right strategy, and how to think about cash and people and that makes you the entrepreneur redundant. 
So if you're never going to sell your business, it's still great to be redundant because you get your freedom and your time and everything back.

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But more importantly, if you are ready to sell your business, the number one value driver, the entrepreneur’s redundant. If a business is predictable and produces results, time after time after time, that's less risky for someone to invest their capital, and then one that's all over the map and completely disorganised and we don't know if we're going to win today or lose or what's going on. 
So be predictable, be systematic, as an entrepreneur be completely redundant in the business, and that will drive your value more than anything else”.

Think Apple. Many people thought Steve Jobs’ baby would never survive after his passing in 2011.

Yet a decade later, the company achieved a valuation almost 10x what it was when he passed. Just like in parenting, the measure of your success is how your “children” behave when you’re not around!

The Scaling Up Performance Platform helps you do just this. It reduces by 80% the time it takes for an owner to manage the business.

And after 36 months, with the support of a coach, most CEOs are able to spend as little as a few days a quarter primarily driving strategy. And this gives owners time to be actively involved in the process of exiting their business. Warning: Keep it a secret that you’re spending almost no time “in” the business

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